Supreme Court Upholds Arbitral Award in Favor of Anglo American Coal

In a significant ruling, the Supreme Court has upheld a $78.72 million arbitral award in favor of Anglo American Metallurgical Coal Pvt Ltd, dismissing the claims brought forward by state-run MMTC Ltd. The decision highlights the importance of providing evidence when bringing allegations that could potentially harm reputations, especially within PSUs and private firms.

The judgment addressed the potential chilling effect on decision-making in companies, both public and private, driven by fear of retrospective litigation. Justice Sanjay Kumar and Justice K V Viswanathan emphasized that while improper or extraneous-decisions should not be condoned, accusations must be supported by adequate proof.

The case stemmed from a 2007 coal supply agreement, which ended in dispute during volatile market conditions. While a Delhi High Court ruling initially set aside the arbitral award, the Supreme Court reinstated it in 2020. The recent judgment reaffirms the award's enforcement, dismissing MMTC's further attempts to challenge its execution.